10 Tax Breaks for Bloggers – REPOST
Photo @sublimeagency.com
As we get closer to “Tax Day”, I wanted to repost this article to help you find additional deductions before you file this year’s tax returns.
Hello friends, if you make money from your blog and live in the United States, you have to claim that income on your tax return. Fortunately, there are many deductions you can take on your tax return as a blogger. PLEASE NOTE that it is always best to seek the advice of a tax professional to make sure you qualify for any and all deductions based on your individual tax situation.
The following list provided by Susan Gunelius will give you an idea of some blogging breaks/deductions that you should be aware of and consider as you prepare your tax return.
1. Internet-related Expenses
As a blogger, you may be able to deduct your internet-related investments and expenses. For example, consider deducting:
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Hosting fees
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Domain name registration fees
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Internet access fees
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Blogging software fees (for example, TypePad charges fees)
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Image or music downloads for your blog
2. Computer Equipment
You may be able to deduct:
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Your computer
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Upgrades (such as memory upgrades, etc.)
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Laptop
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Wireless router
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New keyboard, mouse, monitor, etc.
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Software (for example, photo editing software, accounting software, tax preparation software, etc.)
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Web camera
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Digital camera
3. Communications-related Expenses
Many of the communications-related equipment and tools you use to run your blog could be deductible, including:
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Second phone line for your business or fax machine
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Fax machine
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Cell phone calls
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Long distance calls
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Blackberry, iPhone, etc.
4. Office Equipment
Traditional office items could be deductible such as:
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New desk
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Chairs
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Lights
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File cabinets
5. Supplies and Stationery
Little supplies can add up quickly. Keep track of the receipts as these items could be deductible:
- Business cards
- Letterhead
- Envelopes
- Paper clips
- Staplers and staples
- Paper
- Post-its
- Folders
6. Advertising, Promotion and Design
Most bloggers invest something into design, advertising or promotion each year. Remember to deduct applicable expenses such as:
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Blog design (custom blog, header, etc.)
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Advertising design
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Logo, letterhead, etc. design
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Advertising placement
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Contest prizes
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Promotional giveaways (for example, imprinted pens, magnets, etc.)
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Paid site submissions
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Search engine optimization services
7. Travel and Entertainment
If you attend blogging conferences or meetings, you can most likely deduct those expenses :
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Conference fees
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Hotel charges while away on business related to your blog
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Dining charges while away on business related to your blog
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Entertainment for clients you take out related to your blog
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Transportation (car, train, plane, etc.) when it relates to business for your blog
8. Professional Association Memberships and Periodicals
Many bloggers belong to professional associations related to the topic of their blog or to blogging, itself. Professional dues may be deductible. Similarly, periodicals and books that you purchase to help you learn and grow could be deductible, including:
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Professional association dues
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Books, magazines, online subscriptions
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Professional website memberships
9. Office Space and Related Expenses
If you work out of your home to conduct your blogging business, you may be able to deduct the rent for your office space from your tax return. Alternatively, if you work from your home, you may be able to deduct a portion of your household bills as “rent” for that space (if you use that space solely to conduct your blogging business. Expenses in this category could include:
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Rent
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Electricity
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Water
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Natural gas
10. Miscellaneous Other Expenses
There are a multitude of little out-of-pocket expenses that you may be able to deduct as a blogger. Consider the following as you prepare your tax return:
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Costs to re-use photos or images owned by another person or entity
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Headshots used on your blog, website or marketing materials
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Postage
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Post office box (if you use one solely for your blogging business)
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Safe deposit box (if you use one solely for your blogging business)
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Fees for professional services such as a lawyer or accountant
HAPPY NEW YEAR ~ HAPPY NEW YOU!
Some of these I’m a bit hesitant on (like travel and home office) but I do deduct some of the things in #1 and #5.
As long as you can deduct something, it makes a difference in your tax bill. Enjoy the night.
Thank goodness I have an accountant to deal with my taxes. Last year he was finding a bunch of tax breaks for me. But I still had a big tax bill since I wasn’t paying quarterly taxes at the time.
Good for you, when I grow up I want to be just like you!!!
Thanks for this article. I’m just getting started and I didn’t really think about it being a “business.” I will keep track of all of my expenses for next year. YOU ROCK!!
Yes, I started with an envelope with receipts notating on the outside which post the items were being used for. Good luck and enjoy the rest of the week.
What a great, informative post. If i ever, fingers crossed earn anywhere near to being taxable, i have jotted iit all down x
Laurie
Laurie, it will be just a matter of time! Enjoy your week.
Very helpful tips. Do we have to be an LLC or sole proprietorship to use these tax breaks?
Deborah, I don’t believe so, however, you’ll need to check with a tax adviser/accountant. I do know that if you are receiving 1099s for any sponsored posts, which is income, these deductions can help lower your tax rate.
This is awesome! Thank you so much for putting this together and sharing it with us! Gladly passing this information along. Have a great week!
Corina, thank you very much, I found it very informative and just wanted to share with others. Enjoy your week as well.
Wow never considered this! This is an awesome post. Thank you !
http://www.dressed2dnines.com
Glad it was informative for you. Enjoy the rest of the week.
Thanks for this exhaustive list Antionette! All deductions are very similar to when you’re operating your own business then?
yes, my dear Karen because blogging can be a business as well.
I really love reading this post and I actually printed it out. You probably don’t know but I have a Wigmaking Blog called (wigweaves.com) that is connected to my Etsy site, I probably make 1K-2K a month selling my patented lace wig straps and wigmaking training kits. I also do in-person wigmaking training which I don’t get many clients because it requires travel for them. My husband always goes bananas when I hand over all my recordkeeping for our tax guy because i’m always taking way more money in and never enough deductions…. but now… that’s about to change!
Goddesslily, you are definitely doing your thing and I am glad these tips helped. I have to agree with hubby…but I know you can turn it around because you’re a wise woman with a mission!
good to know! thank you so much for sharing.
I just wanted to say THANKS for this. It helped me a lot this year. 🙂
I am over the top happy – thank you!!!
Thanks for sharing. This was really helpful
I am glad, I have been saving my receipts and documenting my expenses!